PIMCO buying Columbia Property Trust for $2.2B

Deal by investment management firm valued at $3.9 billion including debt

National /
Sep.September 07, 2021 09:50 AM
Columbia Property Trust CEO Nelson Mills and PIMCO CEO Emmanuel Roman (Columbia Property Trust, PIMCO)

Columbia Property Trust CEO Nelson Mills and PIMCO CEO Emmanuel Roman (Columbia Property Trust, PIMCO)

PIMCO is poised to enter the office market at its low point, agreeing to buy Columbia Property Trust for $2.2 billion.

The deal for the REIT will include $19.30 per share in cash, a 16.6 percent premium from Fridays’ closing stock price, according to Reuters. The deal is valued around $3.9 billion when including debt.

Shares of Columbia Property Trust jumped 19.5 percent in pre-market trading on Tuesday. The deal is expected to close as soon as the end of this year.

Columbia Property Trust is best known for its work in the office market, which has struggled during the pandemic as more people work from home. Although office leasing doubled from July to August in Midtown Manhattan, the average asking rent is at its lowest since 2017.

The REIT is developing the Terminal Warehouse project in West Chelsea in conjunction with L&L Holding Company. The partners recently received a $1.25 billion loan on the 1.3-million-square-foot project, which will be used by office and retail tenants.

Prior to the pending PIMCO acquisition, Columbia Property Trust was considering an unsolicited bid from Arkhouse Partners for about $2.24 billion.

Columbia Property Trust manages 15 office properties, with four more under development, in addition to managing another eight million square feet of space on behalf of private investors and third parties.

[Reuters] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    The Centre at Purchase at 1, 2, 3, 4 Manhattanville Road with George Comfort & Sons CEO Peter Duncan (George Comfort & Sons)
    Westchester office park owned by George Comfort & Sons slated for auction
    Westchester office park owned by George Comfort & Sons slated for auction
    Attorney General Letitia James and A&E Real Estate CEO James Patchett (Getty, iStock)
    A&E pays just $510K in lead-paint settlement
    A&E pays just $510K in lead-paint settlement
    Seeding from recapitalization of 25 health care properties
    KKR, Cornerstone in $1B JV to develop health care facilities
    KKR, Cornerstone in $1B JV to develop health care facilities
    The Broadway location of Halloween Adventure (Facebook via New York Costumes / Halloween Adventure)
    Halloween Adventure to vacate East Village home as retail condo hits market
    Halloween Adventure to vacate East Village home as retail condo hits market
    Bluerock Residential CEO Robert Ramin Kamfar (Owler)
    NY-based multifamily REIT Bluerock explores sale
    NY-based multifamily REIT Bluerock explores sale
    Two more rent law challenges tossed, landlords reserve hope in appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Two more rent law challenges tossed, landlords rest hopes on appeal
    Purchases across the country rose 0.7 percent in August, easily outpacing estimates by retail analysts. (iStock)
    Big month for retail sales bodes well for landlords
    Big month for retail sales bodes well for landlords
    A rendering of River Ring with Two Trees CEO Jed Walentas (BIG, Getty)
    CB1 approves Two Trees’ River Ring, keeping project on pace
    CB1 approves Two Trees’ River Ring, keeping project on pace
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...